Yahoo Finance APAC Submarine Cable System Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Service ; by Application
The APAC submarine cable system market is expected to grow from US$ 235. 85 million in 2021 to US$ 546. 78 million by 2028; it is estimated to grow at a CAGR of 12. 8% from 2021 to 2028. Submarine cables, fiber-optic cables laid in the ocean, carry more than 99% of intercontinental communication traffic, which makes them the invisible enablers of global connectivity.
New York, May 19, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "APAC Submarine Cable System Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Service ; by Application" - https://www.reportlinker.com/p06279481/?utm_source=GNW
At present, there are more than 500 subsea cables in operation.
Cables connecting nearby islands can be shorter than 50 miles, whereas those traversing the Pacific can reach more than 10,000 miles in length. Many of them are used to connect a single connection line across a water body, while others have multiple landing points connecting multiple countries.
The major stakeholders in the APAC submarine cable system market analysis include service providers and end-users.The service providers are the companies engaged in supplying and installation of submarine power cables, it also provides offering desktop study, marine route survey, permitting, cable procurement, civil construction at each cable landing site, vessel logistics, and submarine cable deployments, and maintenance services for submarine cable systems.
These companies have their own specialized assets, trained personnel, and well-established and experienced subcontractors, where required, and have completed a large number of turnkey projects.It also has an extensive service portfolio offering for the submarine business, which includes project management, installation, and commissioning, along with marine and maintenance operations performed by a fleet of cable ships.
Thus, wide scope demand for submarine cable systems is anticipated to positively influence the services APAC submarine cable system market size for submarine cable systems.
The major end-users considered in the APAC submarine cable system market includes telecommunication, power generation, and oil & gas.The telecom industry in the APAC submarine cable system market is mostly using submarine cable systems for carrying telecommunication signals, telephone conversations, the internet, emails, and television.
The growing demand APAC submarine cable system market size for internet bandwidth and rising fiber connectivity among the nations is augmenting the need for the installation of submarine cables within the telecom industry in the APAC submarine cable system market. The rise in demand for clean energy generation from renewable energy sources APAC submarine cable system market has specifically offshore wind energy is also fueling the adoption of submarine cables for interconnecting the grid among the countries. Therefore, the rise in demand for internet bandwidth coupled with growing investment in the grid and demand from content providers is augmenting the deployment of submarine cable systems in APAC submarine cable system market
Countries in Asia-Pacific focus on encouraging cross-sector, cross-border, and cross-vector strategic partnerships to accelerate progress toward net-zero carbon emissions.Many low-cost renewable energy resources are located in sparsely populated areas away from load centers.
In many cases, the resources are situated across international borders from the energy demand centers.Therefore, cross-border electricity trade, enabled by power grid infrastructure connectivity, creates a need to manage the energy surpluses and deficits across the region in an optimal manner.
Rapid economic APAC submarine cable system market demands of a growing middle-class population and the increased access to modern energy sources propel the demand for energy. Thus, regulatory support coupled with the revision of existing policies to strengthen the cross-border trading of electricity drives the growth of the APAC submarine cable system market.
The growing expansion of new APAC submarine cable systems analysis to positively drive the APAC submarine cable system market in the coming years.For instance, in February 2022, Savills Korea announced a joint development by signing an agreement with KT for installing a new cable with a total length of 9,000 km that will land in 6 countries within APAC connecting South Korea, Japan, Taiwan, Indonesia, Philippines, and Singapore.
The initiative was in response to the fast-growing demand for global data capacity growth.Additionally, in February 2022, Sumitomo Electric Industries and Seaway 7 signed a Memorandum of Understanding to provide subsea cable engineering, procurement, installation, and commissioning (EPIC) services for offshore wind projects in Japan and the other countries in the Asia-Pacific region.
The initiative was planned to achieve the offshore wind capacity target of Japan.Thus, such significant initiatives for upcoming projects are anticipated to drive the APAC submarine cable system market growth.
All these factors are contributing to the APAC submarine cable system market in the growth of the APAC submarine cable system market.
Based on service, the APAC submarine cable system market is segmented into installation services and maintenance & upgrade services.The cable installation process includes landing cables onshore and laying across the ocean or body of water until reaching the other side.
The cable handling and monitoring are crucial factors during the cable laying process as the cable can be damaged if the minimum bending radius, actual strain, or other limits are not carefully observed during installation.Submarine cable installations are expensive and highly engineered operations executed by large construction vessels in extremely harsh environments.
Submarine cables comprise two key components, including optical fibers that carry the data and a conductive material that transmits the current used to feed the optical amplifiers located along the subsea cable.Additionally, cables are coated with several layers of protective materials to guard and protect them against water and corrosion whereas the maintenance and upgrade services are provided by the service providers of submarine cables for efficient transmission of power, data, and information.
The failure of submarine cables occurs through various means, such as fishing activity, turbulent weather, improper installation, earthquakes, and dredging. The prices for procuring these services depend on various factors such as length of the cable, type of cable, time consumed for maintenance, type of maintenance, and complimentary service provided. Increasing penetration of the internet, growth prospects in the telecom industry, and the rise in transmission of power are the prominent factors responsible for the demand for maintenance activities, helping to drive the APAC submarine cable system market share.
The APAC submarine cable system market players includes NEC Corporation, S.B.
Submarine Systems Co., Ltd., SubCom, LLC, NTT WORLD ENGINEERING MARINE CORPORATION, and Alcatel Submarine Networks among others.
Impact of COVID-19 Pandemic on APAC Submarine Cable System Market
The global COVID-19 crisis drastically affected APAC countries, namely China, India, and Japan, especially in 2020.The consequent enactment of lockdown measures and the slowdown of manufacturing industries in these countries has led to a slowdown in the production of submarine cables.
The submarine power cable installation capacity plummeted by ~3–4% in 2020 compared with the previous year, while the number of oil and gas rigs had fallen down significantly in APAC submarine cable system market.A halt in the international movements and a temporary shutdown of factories and businesses were the other consequences of the COVID-19 pandemic.
The shuttering of manufacturing factories did not have any immediate impact on global connectivity, but it pushed back the deployment of new systems. However, in 2021 and later, the APAC submarine cable system market is expected to start recovering from the impact of COVID-19 with the resumption of projects for renewable energy grids and communication networks.
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